Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 506 Original Sheet No. 506 : Pending

GENERAL TERMS AND CONDITIONS

----------------------------

nor shall collection of any such amounts in ITS base rates reduce or

be counted toward the cost responsibility of any of the G Customers

hereunder.

(b) (1) Each of the G Customers shall be billed

monthly an amount for Supply Realignment Costs equal to the product

of: (i) the volumes delivered to or for the account of such

customer in its traditional market area that month under any type of

transportation agreement with Natural multiplied by (ii) a one-part

volumetric rate which is the derivative at an imputed fifty percent

(50%) load factor of a Demand Surcharge of $3.12. Such monthly

billings shall continue for each of the G Customers until that

customer has fully paid its Supply Realignment Cost obligation set

out in Section 38.5(a)(1), as adjusted under Section 38.5(d).

Alternatively, any of the G Customers may choose to make a lump sum

payment under (2) in lieu of such charges. Any of the G Customers

electing to pay the volumetric one-part rate hereunder shall pay

interest on the cumulative amount by which collections from December

1, 1993 are less than if it had paid monthly Demand Surcharges

commencing December 1, 1993 of $2.44 per unit of billing

determinants underlying the G Customer Settlement [as shown in

Section 38.5(a)(1)], as adjusted under Section 38.5(d). Interest

shall be at the Commission approved rate in 18.C.F.R. Section

154.501(d).

(2) Any of the G Customers may at any time prepay

all or any portion of its Supply Realignment Cost responsibility set

out in Section 38.5(a)(1). Such cost responsibility shall be

reduced to present value for such a prepayment by application of a

discount factor equal to the Commission approved interest rate under

18 C.F.R. Section 154.501 on the assumption the customer paid the

amount allocable to it in Section 38.5(a)(1) in equal monthly

installments over that portion of the forty-eight (48) months

commencing December 1, 1993 which remains as of the date payment is

made.

(3) Billings under this Section 38.5(b), and the

associated interest, are subject to adjustment pursuant to Section

38.5(d).

(4) Any amounts paid by any of the G Customers

pursuant to Natural's Supply Realignment Cost recovery provisions in

effect prior to the date this Section 38.5 becomes effective shall

be applied to reduce the remaining balance of the amount due from

that customer set out in Section 38.5(a)(1). Natural shall pay